CUTTING EDGE -- Making the move

Businesses that have experienced continued success in today’s rapidly changing world have been able to demonstrate a superior capability in both recognising and responding to client needs, writes David Fox.

Successful travel agents recognise that client needs have changed from having flight and accommodation reservations made for them to ensuring they have the best holiday experience.

Successful office supply businesses recognise that customers needs have changed from having an assortment of stationary products to a presentation range that will satisfy all the office needs of a business and home office occupant – including furniture, technology and catering!

And the successful accountant recognises that customers no longer value having the demand for a service such as completing a tax return met, and now deliver advice that will minimise tax liability and maximise personal and business income generating capacity.

Clients now have a greater realisation of their needs. They are now consequently far more demanding as they begin to appreciate their increasing power and how many service providers are competing for the privilege of servicing them.

Mortgage brokers that aim to succeed in today’s market must now recognise the changing needs of the client and in response transition to become a client adviser. To make this transition successfully, there will need to be three major changes implemented. The biggest change will be a shift in the belief that their role is to ‘broker’ the best loan product on behalf of a customer to one that they determine the most appropriate financial advice to satisfy that customer’s needs.

The professional who believes they are a mortgage broker will react to what a client wants by providing a solution to that want. However, the professional who believes they are a client adviser will engage the client in conversation on what is important to them and explore the advice needs to help them achieve what is important.

The client adviser believes their role is no longer managing wants but uncovering needs, no longer completes transactions according to the business capability but satisfying the advice needs of the client, no longer focuses on costs but gives value, and no longer does it all themselves but leverages specialists and advice partners.

To support this change in belief there will be a need for today’s typical broker to redesign and implement the client engagement process.

The engagement process of the client adviser focuses on uncovering what’s important to the client and identifying the components of advice that the client needs to achieve what’s important.

This process begins with giving the client a damn good listening to! Providing the opportunity for the client to tell their story and then asking probing questions to determine if their wants and needs are aligned.

These questions often uncover issues which the client had previously not considered and this may impact on the advice priorities they need which could be different than the priority advice they thought they wanted.

The third critical change that will be required in the successful transition from mortgage broker to client adviser is the engagement of other professionals. The client adviser understands that they do not have to advise on all financial related matters – that is beyond the most capable of all professionals.

They will form relationships with those who have specialist capabilities. Because the client will not be able to receive the most appropriate financial advice unless there is access to these specialist advice components. These changes will be major contributors to a successful transition from mortgage broker to client adviser.

David Fox is the principal of Advice Centre Consulting and has been a keynote speaker at NAB Broker national roundtable functions, completed papers on the future of the mortgage and finance professional for the MFAA and facilitated workshops for a number of aggregator groups.